question for tax guys

[MadJack]

i know i can ask my accountant but it's saturday and he's too busy being tax time and all.

can you use your retirement account(s) to open a new business without paying the early withdrawal penalties and taxes?

if so, how does that work?

i read somewhere that you can but it could be a scam.

 

[bubbas1]

Dont think it can be done. The only thing I believe it can be used for without taking the tax hit is a 1st time house buyer.

We were told to not even think about touching it because the tax hit is huge.

Do you have the money in a plan where you can borrow against it? Might be something to look into.

 

[IntenseOperator]

BBC should have this covered

 

[DOGS THAT BARK]

You might get around it with a 72(t) distribution, but for practical purposes only reasons generally allowed are

Permanent disability
Death of IRA owner
first-time home purchase
education costs
back taxes on IRS judgement
non-reimbursed medical expenses exceeding 7.5% of gross income
medical insurance premiums

 

[MadJack]

You might get around it with a 72(t) distribution, but for practical purposes only reasons generally allowed are

Permanent disability
Death of IRA owner
first-time home purchase
education costs
back taxes on IRS judgement
non-reimbursed medical expenses exceeding 7.5% of gross income
medical insurance premiums

i can use my retirement accounts to pay for my health insurance and not pay taxes or penalties or tax penalties?

 

[BobbyBlueChip]

BBC should have this covered

Sure. Once I find out from my tax accountant, I'll let Jack know.

 

[DOGS THAT BARK]

i can use my retirement accounts to pay for my health insurance and not pay taxes or penalties or tax penalties?

Yep--but I doubt in your case because restrictions apply--

--you have to have had loss of job and a minimum of 12 consecutive weeks of unemployment compensation.

 

[MadJack]

Sure. Once I find out from my tax accountant, I'll let Jack know.

:mj07:

 

[MadJack]

Yep--but I doubt in your case because restrictions apply--

--you have to have had loss of job and a minimum of 12 consecutive weeks of unemployment compensation.

they always have rules :shrug:

 

[Schlitz]

MadJack just remember that what applies for the IRS does not always apply in the state you live. I work for the New York state tax department & I can tell you that while law dictates the New York State Tax return has to "match" the federal return ... that for all intents & purposes only applies to FAGI (Federal Adjusted Gross Income) & Itemized deductions.

From there the rules can end up very different. I know that in New York we have a taxpayer services hotline & would not be suprised if you have one in the state in which you live as well.

spam edited:admin